Nonresident Enrollment Research Articles

School Choice, Local Discretion, and Stratification: Evidence From Inter-district Open Enrollment in Metro Detroit

School choice policies can, by design or in implementation, give schools and districts discretion over enrollment. In this study, I examine the effect of local discretion over inter-district open enrollment on non-resident enrollment. I use longitudinal data on open enrollment patterns and policies in the metropolitan Detroit area. I find that when districts set more restrictive open enrollment policies, they enroll fewer new non-resident students overall, due to a decrease in new Black, Hispanic, and low-income non-resident students specifically. When districts allow inter-district open enrollment, racial and socioeconomic segregation within those districts do not change, and racial isolation slightly increases. My findings suggest that regulating enrollment policies to reduce discretionary exclusion can increase access to inter-district choice for some low-income and racially minoritized students, but that these kinds of policy changes are unlikely to reduce racial segregation and socioeconomic stratification more broadly.

An Exploration of Nonresident Student Enrollment and Institutional Finances at Public Universities

Many public universities have sought to increase the number of students they enroll from other states, with the assumption that a larger share of nonresident students increases institutional revenues and prestige. In this paper, I examine the extent to which out-of-state undergraduate student enrollment shares are associated with changes in per-student revenue and expenditure patterns at four-year public universities both as a whole and by selectivity and Carnegie classification. I find that an increase in the percentage of students from out of state is associated with decreases in per-student tuition revenue and is often associated with a decline in per-student expenditures.

NONRESIDENT POSTSECONDARY ENROLLMENT GROWTH AND THE OUTCOMES OF IN‐STATE STUDENTS

We study the effects of exposure to nonresident students on the outcomes of undergraduate in‐state students during a period of high nonresident enrollment growth at the University of Missouri‐Columbia. Our models leverage within‐major, cross‐time variation in nonresident exposure for identification. We find no evidence that increased exposure to domestic nonresidents affects in‐state student outcomes and our null results are precisely estimated. We find evidence of modest negative impacts on in‐state students when their exposure to foreign students increases using our preferred specification. However, the identifying variation in exposure to foreign students in our data is limited and this result is not robust in all of our models. (JEL I23, I28, R23)

Do Nonresident Students Affect Prices for In-State Students at Public Colleges?

Background/Context Public colleges and universities have sought to recruit and enroll more students from outside their home state in an effort to both enhance institutional prestige and generate additional revenue from the higher tuition rates than nonresident students generally pay. A body of research has shown that nonresident students tend to be more economically advantaged and less racially diverse than in-state students and that increases in out-of-state students crowd out lower income and minority state residents from more selective public colleges. Purpose/Research Questions Although research has shown some adverse effects of additional nonresident enrollment, no prior research has examined whether the additional money generated from out-of-state students’ higher tuition rates is used to help make college more affordable for state residents. In this article, I examined whether increased percentages of nonresident students were associated with changes in the sticker or net prices of attendance at four-year public colleges and whether any relationships were different between broad-access and selective public colleges. Research Design I used data on college pricing and nonresident enrollment from the U.S. Department of Education's Integrated Postsecondary Education Data System from the 2000– 01 through 2013–14 academic years from 505 public four-year colleges in this analysis. I used panel regressions with controls for other state-level factors that could have affected nonresident enrollment. In my preferred specifications, I used Arellano–Bond estimators to account for autoregressive processes in the data and used a one-year lag between nonresident enrollment and when prices paid by in-state students were measured. Results and Conclusions There was no systematic relationship between changes in the percentage of nonresident students and the sticker or net prices faced by in-state students. This suggests that although state residents do not appear to be subsidizing an amenities arms race to attract students from other states, the additional tuition revenue coming from nonresident students is not being used to help subsidize in-state students. Future research should investigate how public colleges are using the additional revenue if it is not being used for student financial aid.

The Relationship Between Open Enrollment and School Bond Voting

Purpose: The purpose of this study was to identify an association between student mobility through open enrollment and voter support for school bond proposals. Specifically, we hypothesized that higher percentages of nonresident enrollment in a school district and resident exit from a district would be associated with lower levels of voter support for bond proposals. Data Collection and Analysis: We utilized publicly available data on bond proposals placed on ballots between 2009 and 2015, publicly available data from the State of Michigan for information on percentages of nonresident enrollment and resident exit, and publicly available data from the U.S. Census Bureau for data on district resident characteristics. Regression analysis was used to identify associations between nonresident enrollment and resident exit with the percentage of “yes” votes on school bond proposals controlling for community and resident characteristics. Findings: We failed to reject the null hypotheses, finding no statistically significant association between nonresident enrollment and resident exit and average voter support for school bond proposals, ceteris paribus. Implications for Research/Practice: We laid some groundwork for reconceptualizing the relationship between open enrollment policies and communities’ willingness to support local public schools. This has potential implications for both local- and state-level policies regarding enrollment issues and issues of school finance. As local boards continue to struggle with budget shortfalls and mounting capital needs, they may need to further weigh their own communities’ interest in supporting local public schools in the wake of increased student mobility in and out of districts.

Tuition Rich, Mission Poor: Nonresident Enrollment Growth and the Socioeconomic and Racial Composition of Public Research Universities

Many public research universities fail to enroll a critical mass of low-income and underrepresented minority (URM) students. Though founded with a commitment to access, public research universities face pressure to increase tuition revenue and to recruit high-achieving students. These pressures create an incentive to recruit nonresident students, who tend to pay more tuition and score higher on admissions exams, but who also tend to be richer and are less likely be Black or Latino. This paper examines whether the growing share of nonresident students was associated with a declining share of low-income and URM students at public research universities. Institution-level panel models revealed that growth in the proportion of nonresident students was associated with a decline in the proportion of low-income students. This negative relationship was stronger at prestigious universities and at universities in high-poverty states. Growth in the proportion of nonresident students was also associated with a decline in the proportion of URM students. This negative relationship was stronger at prestigious universities, universities in states with large minority populations, and universities in states with affirmative action bans. These findings yield insights about the changing character of public research universities and have implications for the campus climate experienced by low-income and URM students.

Tuition Rich, Mission Poor: Nonresident Enrollment Growth and the Socioeconomic and Racial Composition of Public Research Universities

Many public research universities fail to enroll a critical mass of low-income and under-represented minority (URM) students. Though founded with a commitment to access, public research universities face pressure to increase tuition revenue and to recruit high-achieving students. These pressures create an incentive to recruit nonresident students, who tend to pay more tuition and score higher on admissions exams, but who also tend to be richer and are less likely be Black or Latino. This paper examines whether the growing share of nonresident students was associated with a declining share of low-income and URM students at public research universities. Institution-level panel models revealed that growth in the proportion of nonresident students was associated with a decline in the proportion of low-income students. This negative relationship was stronger at prestigious universities and at universities in high-poverty states. Growth in the proportion of nonresident students was also associated with a decline in the proportion of URM students. This negative relationship was stronger at prestigious universities, universities in states with large minority populations, and universities in states with affirmative action bans. These findings yield insights about the changing character of public research universities and have implications for the campus climate experienced by low-income and URM students.

Creating the Out-of-State University: Do Public Universities Increase Nonresident Freshman Enrollment in Response to Declining State Appropriations?

This study investigates whether public universities respond to declines in state appropriations by increasing nonresident freshman enrollment. State higher education appropriations declined substantially during the 2000s, compelling public universities to become more dependent on net-tuition revenue. State policy controls often limit the growth of resident tuition price. Therefore, public universities have an incentive to grow nonresident enrollment in order to grow tuition revenue. Drawing on resource dependence theory, we hypothesize that public universities respond to declines in state appropriations by growing nonresident freshman enrollment. Furthermore, we hypothesize that this response will be strongest at research universities because research universities enjoy strong demand from prospective nonresident students. We tested these hypotheses using a sample of all US public baccalaureate granting institutions and an analysis period spanning the 2002–2003 to 2012–2013 academic years. Fixed effects panel models revealed a strong negative relationship between state appropriations and nonresident freshman enrollment. This negative relationship was stronger at research universities than master’s or baccalaureate institutions. These results provide empirical support for assertions by scholars that state disinvestment in public higher education compels public universities to behave like private universities by focusing on attracting paying customers.

Cohort crowding and nonresident college enrollment

This study uses a fixed effects panel data framework to examine the effects of cohort crowding and other variables on nonresident enrollment at four-year public colleges and universities. The results suggest that larger cohorts of resident students crowd out nonresident students at flagship universities, but there is inconsistent evidence of crowd out at non-flagship schools. Additionally, larger cohorts of resident students result in increased nonresident tuition at flagship universities but not at non-flagship schools. When faced with larger cohorts of resident students, flagship universities lower the numbers of nonresident students enrolled and raise the price for nonresidents.

Nonresident Enrollment at Religious and Secular Colleges

Institutional characteristics and regional economic data are used to determine if religious private colleges have a higher percentage of nonresident students than do secular colleges. A test of means and a two-stage least squares regression are used on a data set of 827 private higher education institutions to present evidence on the differences between religious and secular private colleges. The study finds that the percentage of nonresident students is higher at secular than at religious private colleges. Evidence suggests that religious colleges may serve a special niche in their local market. It does not appear that nonresident students are willing to attend a religious college solely for religious reasons as their lower tuition levels do not result in higher out-of-state enrollments.

Nonresident Enrollment Demand in Public Higher Education: An Analysis at National, State, and Institutional Levels

This article estimates the standard demand equations for nonresident students using national, state, and institutional level data. The national-level analysis reveals a near-unitary price elasticity, but increases in nonresident tuition and fees do not decrease nonresident enrollment. Finally, results from the institutional level of analysis (preferred) indicate rather inelastic student responsiveness to changes in nonresident tuition and fees. On average, a 1% increase in nonresident tuition and fees at a public institution is associated with a 0.2% reduction in its nonresident enrollment. Furthermore, price elasticity is smaller at selective institutions than at less selective ones.

The demand for higher education: Pennsylvania's nonresident tuition experience

From 1991 to 1993 nonresident tuition in the Pennsylvania State System of Higher Education increased an average of 19.6% per year. This policy was used to shield state taxpayers from the burden of subsidizing the cost of nonresident student education and to insure access for resident students. It appears that careful regard for the price sensitivity of nonresident students was not taken. Between 1991 and 1996 the State System experienced an approx. 40% decline in nonresident enrollment. This study estimated the price elasticity of demand for both nonresident and resident students. The empirical findings indicated nonresident demand being price-elastic while the model was not robust enough to explain the variation in demand by resident students. The large tuition increase coupled with an elastic demand caused a significant loss of nonresident enrollment and tuition revenue in the System. A new pricing policy for nonresident students was subsequently instituted to account for the effect of market forces.

Student Migration: Do Significant Factors Vary by Region?

This research paper utilizes a two-stage least-squares regression equation to examine factors that significantly impact student migration in different US geographic regions. The dynamic interaction between a university, its environment, and student migration is examined by employing a unique data set that combines institution-specific characteristics with regional economic variables. The study found that higher education institutions that have regionally recognized quality programs have greater ability to attract nonresident students. In addition, it appears that there is a linkage between nonresident enrollment and the economic environment where the university is located.

The economic impact of nonresident students on West Virginia's economy

This paper describes a cost-benefit analysis of the impact of nonresident higher education students on the economy of West Virginia during the academic year 1985–86. During that year, the 10,091 FTE nonresident students enrolled in higher education institutions in West Virginia contributed to the state economy an estimated $72,182,000 through tuition and fees, living expenses, and travel expenses of parents and friends. The $72,182,000 flowing through the state's economy generated $86,618,318 in direct and indirect financial benefit to the state, while the state allocation attributed to the education of these nonresident students was $28,668,537. This return on investment, a benefit to cost ratio of 3.02, represents the net economic impact on West Virginia's state and local economies associated with higher education's nonresident enrollment in 1985–86. The ratio suggests that for each one dollar invested by the state in non-resident students, the state realized a return of $3.02 over the period of one academic year.